Innocent Bystanders

The Benefits of Obamacare vs. Math February 24, 2014

Does nobody in the press do math anymore? From an AP article talking about how beneficial Obamacare is for 55 – 64-year-olds:

Nishimura lost his coverage after leaving a full-time position with benefits in 2007, thinking he could land another good job. The recession ruined that plan. After COBRA coverage expired, he was denied coverage because of high blood pressure and other conditions.

He made it until September without a major illness. A second night of gallbladder pain and a chat with a doctor persuaded him to have the surgery. After getting the bills, he negotiated the fees down to $12,000, which he considered “a big hit, but it could have been worse.” The average cost of a gallbladder removal in Arkansas was listed at three times that. Nishimura dipped into his savings to cover the bill.

In December, he chose a bronze plan on the new insurance marketplace that costs him $285 a month after a tax credit. The deductible is $6,300, so he hopes he doesn’t have to use his coverage.

So let’s take a look at his bill of $12,000. If we take the time from 2009 (when his COBRA benefits probably expired) to September 2013, we have $285 x 48 months for his Obamacare premiums. That’s $13,680. So, even if he’d had Obamacare coverage since 2009, he would have paid $13,680 plus his $6300 deductible.

He pays $19,980 for a surgery that cost him $12,000. Not to mention the cost to taxpayers for subsidizing his premium.

I think we all appreciate the benefits of having insurance coverage for catastrophic events. But this article is trying to show the economic benefits of Obamacare by implying that Nishimura is now spending less money that before.